In business combination, the fair value of combinee bonds payable was $ 90,000 and the carrying amount of bonds payable was $ 110,000. The journal entry to allocate liquidated company to identifiable assets and liabilities with remainder to goodwill includes: а. Debit to discount on bonds payable $ 20,000. b. Credit to bonds payable $ 90,000. С. Debit to discount on bonds payable $ 110,000. d. Debit to discount on bonds payable $ 90,000.

In business combination, the fair value of combinee bonds payable was $ 90,000 and the carrying amount of bonds payable was $ 110,000. The journal entry to allocate liquidated company to identifiable assets and liabilities with remainder to goodwill includes: а. Debit to discount on bonds payable $ 20,000. b. Credit to bonds payable $ 90,000. С. Debit to discount on bonds payable $ 110,000. d. Debit to discount on bonds payable $ 90,000.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PB: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1....

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